Whiteinch Nursery is now one of the best in the city, having earned an "excellent" grade and four "very good" scores.
Education watchdogs praised the centre for its "independent", "considerate" and "cooperative" children.
Head teacher Janette Belcher said: "What stood out in the report for me was the comments about our literacy, numeracy and health and wellbeing.
"These are the core elements of Curriculum for Excellence so the fact we were commended for those, well, I'm really pleased about that."
Mrs Belcher has been head teacher of the school since 2001 and is due to retire this year.
There are 28 languages spoken in the school and it was praised by Her Majesty's Inspectorate of Education for its high standards of literacy.
Watchdogs said children use their literacy skills well and are very involved in books.
The report also said: "Children with English as an additional language are developing their skills in English language above and beyond the expected pace."
Mrs Belcher added: "Literacy is my passion so I am really pleased to see our efforts recognised.
"We have parents come in and read to the children and that includes having parents read to the children in their home languages."
The centre was also hailed for pupils' interactions with each other.
The report said: "They understand the need to consider the feelings of others.
"Their interaction is excellent."
Staff were also praised for providing a caring environment that supports pupils who need extra help.
And parents were hailed for their support of the school.
Praise for Mrs Belcher herself was also included in the report.
It stated: "The head teacher demonstrates very strong and effective leadership."
Councillor Stephen Curran, Executive Member for Education and Young People said: "It's always heartening for a school or nursery to get a very positive inspection report and my congratulations go to all the staff and parents.
"We have amazing schools and nurseries across the city and I'm delighted by this report."